CAPITARETAIL CHINA TRUST 2012 THIRD QUARTER UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT TABLE OF CONTENTS

Transcription

1 2012 THIRD QUARTER UNAUDITED FINANCIAL STATEMENT AND DISTRIBUTION ANNOUNCEMENT TABLE OF CONTENTS Item No. Description Page No. - Summary of CRCT Results 2 - Introduction 3 1(a) Statement of Total Return and Distribution Statement 4 7 1(b)(i) Balance Sheet 8 9 1(b)(ii) Aggregate Amount of Borrowings and Debt Securities 9 1(c) Consolidated Cash Flow Statement (d)(i) Statement of Changes in Unitholders fund (d)(ii) Details of Any Change in the Units 14 2 & 3 Audit Statement 14 4 & 5 Changes in Accounting Policies 15 6 Earnings Per Unit ( EPU ) and Distribution Per Unit ( DPU ) 15 7 Net Asset Value ( NAV ) Per Unit 16 8 Review of the Performance Variance from Previous Forecast / Prospect Statement Outlook and Prospects 19 11, 12 Distribution Interested Person Transactions Mandate Confirmation Pursuant to Rule 705(5) of the Listing Manual 20 Page 1 of 20

2 Summary of CRCT Results 3Q Q 2011 YTD 2012 YTD Actual S$ 000 Actual S$ 000 Change % Actual S$ 000 Actual S$ 000 Change % Gross Revenue 38,633 33, ,666 95, Net Property Income 25,172 21, ,506 63, Income available for Distribution 16,733 14, ,019 41, Distribution Per Unit ( DPU ) (cents) For the period Annualised Q Q 2011 YTD 2012 YTD Actual Actual Change Actual Actual RMB 000 RMB 000 % RMB 000 RMB 000 Footnote: 1. YTD 2011 includes contribution from CapitaMall Minzhongleyuan which was acquired on 30 June Change % Gross Revenue 194, , , , Net Property Income 126, , , , Page 2 of 20

3 INTRODUCTION CapitaRetail China Trust ( CRCT ) was constituted as a private trust on 23 October 2006 under a trust deed entered into between CapitaRetail China Trust Management Limited (as manager of CRCT) (the Manager ) and HSBC Institutional Trust Services (Singapore) Limited (as trustee of CRCT) (the Trustee ), and listed on the Singapore Exchange Securities Trading Limited ( SGX-ST ) on 8 December CRCT is a Singapore-based real estate investment trust ( REIT ) constituted with the investment objective of investing on a long term basis in real estate used primarily for retail purposes and located primarily in China, Hong Kong and Macau. As at 30 September 2012, CRCT owns and invests in a portfolio of nine shopping malls located in six of China s cities. The properties are CapitaMall Xizhimen, CapitaMall Wangjing, CapitaMall Shuangjing and CapitaMall Anzhen in Beijing; CapitaMall Qibao in Shanghai; CapitaMall Erqi in Zhengzhou; CapitaMall Saihan in Huhhot; CapitaMall Minzhongleyuan in Wuhan; and CapitaMall Wuhu in Wuhu which CRCT has a 51% interest in. Page 3 of 20

4 1(a)(i) Statement of total return for the (3Q 2012 vs 3Q 2011) 3Q Q 2011 % S$ 000 S$ 000 Change Gross rental income 35,454 31, Other income 1 3,179 2, Gross revenue 38,633 33, Land rental (1,341) (1,277) 5.0 Property related tax (2,256) (2,143) 5.3 Business tax (2,183) (1,877) 16.3 Property management fees (1,560) (1,358) 14.9 Other property operating expenses 2 (6,121) (5,508) 11.1 Total property operating expenses (13,461) (12,163) 10.7 Net property income 25,172 21, Manager s management fees Base fee (971) (857) 13.3 Manager s management fees Performance fee (1,007) (867) 16.1 Trustee s fees (69) (64) 7.8 Valuation fees (79) (57) 38.6 Other trust operating (loss)/ income (248) 182 N.M. Finance income Foreign exchange gain/(loss) realised 6,068 (86) N.M. Finance costs (2,906) (2,851) 1.9 Total return before change in fair value of financial derivatives, investment properties and 26,197 17, unrealised foreign exchange gain/(loss) Ineffective portion of changes in fair value of cash flow hedges - (1,423) N.M. Foreign exchange gain/(loss) unrealised 4 (7) N.M. Total return before taxation 26,201 15, Taxation 3 (11,000) (5,205) Total return for the period after taxation 15,201 10, Attributable to: Unitholders 14,894 10, Non-controlling interest 307 (242) N.M. Total return for the period after taxation 15,201 10, Footnotes: 1. Other income comprises mainly income earned from atrium space, trolley carts and advertisement panels. 2. Included as part of the other property operating expenses are items in the table below. 3. Included additional provision of tax as a result of the redenomination of shareholder s loan principal from RMB to USD in 3Q Q Q 2011 % S$ 000 S$ 000 Change Depreciation and amortisation 2 (477) (335) 42.4 Doubtful trade receivables recovered 2-33 N.M. Impairment losses on trade receivables 2 (28) - N.M. Plant and equipment written off 2 (8) (7) 14.3 Overprovision of tax in prior years N.M. not meaningful Page 4 of 20

5 1(a)(i) Statement of total return for the (YTD 2012 vs YTD 2011) YTD 2012 YTD 2011 % S$ 000 S$ 000 Change Gross rental income 106,098 88, Other income 1 8,568 6, Gross revenue 114,666 95, Land rental (4,049) (3,467) 16.8 Property related tax (6,783) (6,277) 8.1 Business tax (6,603) (5,274) 25.2 Property management fees (4,739) (3,902) 21.5 Other property operating expenses 2 (16,986) (13,498) 25.8 Total property operating expenses (39,160) (32,418) 20.8 Net property income 75,506 63, Manager s management fees Base fee (2,867) (2,414) 18.8 Manager s management fees Performance fee (3,020) (2,520) 19.8 Trustee s fees (215) (182) 18.1 Valuation fees (228) (218) 4.6 Other trust operating (expenses)/income (1,266) 69 N.M. Finance income Foreign exchange gain/(loss) realised 6,164 (501) N.M. Finance costs (8,667) (8,298) 4.4 Total return before change in fair value of financial derivatives, investment properties and unrealised 65,805 49, foreign exchange gain/(loss) Ineffective portion of changes in fair value of cash flow hedges - (1,423) N.M. Change in fair value of investment properties 38,227 56,588 (32.4) Foreign exchange gain/(loss) unrealised 51 (4) N.M. Total return before taxation 104, ,299 (0.2) Taxation 3 (30,053) (27,712) 8.4 Total return for the period after taxation 74,030 76,587 (3.3) Attributable to: Unitholders 73,166 76,431 (4.3) Non-controlling interest Total return for the period after taxation 74,030 76,587 (3.3) Footnotes: 1. Other income comprises mainly income earned from atrium space, trolley carts and advertisement panels. 2. Included as part of the other property operating expenses are items in the table below. 3. Included additional provision of tax as a result of the redenomination of shareholder s loan principal from RMB to USD in 3Q YTD 2012 YTD 2011 % S$ 000 S$ 000 Change Depreciation and amortisation 2 (1,303) (971) 34.2 Doubtful trade receivables recovered (95.7) Impairment losses on trade receivables 2 (28) (15) 86.7 Plant and equipment written off 2 (30) (7) Overprovision of tax in prior years (47.8) N.M. not meaningful Page 5 of 20

6 1(a)(ii) Distribution statement for the (3Q 2012 vs 3Q 2011) 3Q Q 2011 % S$ 000 S$ 000 Change Total return for the period attributable to 14,894 10, Unitholders before distribution Distribution adjustments (Note A) 1,839 3,792 (51.5) Income available for distribution to Unitholders 16,733 14, Comprises : - from operations 3,813 3,905 (2.4) - from Unitholders contribution 12,920 10, Note A 16,733 14, Distribution adjustments - Manager s management fees (performance component payable in units) 1, Ineffective portion of changes in fair value of cash flow hedges - 1,423 N.M. - Deferred taxation 1,268 1,636 (22.5) - Transfer to general reserve (917) (483) Unrealised foreign exchange (gain)/loss (4) 7 N.M. - Other adjustments Net effect of distribution adjustments 1,839 3,792 (51.5) N.M. not meaningful Page 6 of 20

7 1a)(ii) Distribution statement for the (YTD 2012 vs YTD 2011) YTD 2012 YTD 2011 % S$ 000 S$ 000 Change Total return for the period attributable to 73,166 76,431 (4.3) Unitholders before distribution Distribution adjustments (Note A) (23,147) (34,906) (33.7) Income available for distribution to Unitholders 50,019 41, Comprises : - from operations 11,088 11,480 (3.4) - from Unitholders contribution 38,931 30, Note A 50,019 41, Distribution adjustments - Manager s management fees (performance component payable in units) 3,020 2, Ineffective portion of changes in fair value of cash flow hedges - 1,423 N.M. - Change in fair value of investment properties (38,227) (56,588) (32.4) - Deferred taxation 12,833 18,204 (29.5) - Transfer to general reserve (2,055) (1,447) Unrealised foreign exchange (gain)/loss (51) 4 N.M. - Other adjustments 1, Net effect of distribution adjustments (23,147) (34,906) (33.7) N.M. not meaningful Page 7 of 20

8 1(b)(i) Balance sheet as at 30 Sep 2012 vs 31 Dec 2011 Assets Trust 30 Sep Dec 2011 % 30 Sep Dec 2011 % S$ 000 S$ 000 Change S$ 000 S$ 000 Change Investment properties 1,434,579 1,440,620 (0.4) Plant and equipment 5,772 4, Interests in subsidiaries , ,662 (1.3) Trade and other receivables 9,221 7, Financial derivatives 1 19,779 13, ,779 13, Cash and cash equivalents 95,068 70, , Total assets 1,564,419 1,536, , ,900 (0.6) Less Liabilities Trade and other payables 31,768 50,453 (37.0) 5,033 5,497 (8.4) Security deposits 27,186 24, Interest-bearing borrowings 2 478, , , , Deferred tax liabilities 3 99,400 90, Financial derivatives 1 2,683 3,117 (13.9) 2,683 3,117 (13.9) Provision for taxation 4 22,103 1,741 N.M Total liabilities 662, , , , Net assets 902, ,243 (3.3) 456, ,760 (10.3) Represented by: Unitholders funds 882, ,839 (3.4) 456, ,760 (10.3) Non-controlling interest 19,646 19, N.M. not meaningful 902, ,243 (3.3) 456, ,760 (10.3) Footnotes: 1. As at 30 September 2012, the financial derivative assets of $19.8 million were mainly due to fair value change on the non-deliverable forwards ( NDF ) to hedge the currency exposure on the $50.0 million, $100.0 million, part of the $88.0 million and $100.5 million term loans. As at 31 December 2011, the financial derivative assets of $13.2 million were mainly due to fair value change on the NDF to hedge the currency exposure on the $88.0 million, $100.0 million and part of $100.5 million term loans. As at 30 September 2012, the financial derivative liabilities of $2.7 million were mainly due to fair value change on the interest rate swap ( IRS ) to hedge the variable rate borrowings of $50.0 million, $100.0 million, $100.5 million and part of the $88.0 million term loans. As at 31 December 2011, the financial derivative liabilities of $3.1 million were mainly due to fair value change on IRS to hedge the variable rate borrowings of $50.0 million, $100.0 million, $100.5 million and part of the $88.0 million term loans. 2. Interest-bearing borrowings comprise (i) unsecured term loan facilities of $388.5 million drawn down by the Trust to partly finance the acquisition of the properties in CRCT and utilisation as working capital; (ii) unsecured shortterm loan facilities of $67.0 million mainly to finance distribution to Unitholders and working capital; and (iii) RMB unsecured term loan facility of RMB121.6 million ($24.0 million) mainly to finance CapitaMall Anzhen. 3. The increase was mainly due to higher provision for deferred tax liabilities in 2Q 2012 as a result of the increase in fair value of the investment properties. Page 8 of 20

9 4. The higher provision for taxation as at 30 September 2012 was mainly due to provision for taxation on unrealised and realised foreign exchange gain on revaluation of shareholder s loan principal and interest as a result of redenomination of the shareholder s loans which were previously in RMB to USD. 1(b)(ii) Aggregate amount of borrowings and debt securities Trust 30 Sep Dec Sep Dec 2011 S$ 000 S$ 000 S$ 000 S$ 000 Unsecured borrowing - Amount repayable within one year 220, , , ,500 - Amount repayable after one year 259, , , , , , , ,003 Less: Transaction costs in relation to the unsecured term loan facilities (560) (477) (560) (477) (1) 478, , , ,526 Footnote: 1. The increase in the s borrowings as at 30 September 2012 was mainly due to additional loans drawn at Trust level for distribution to Unitholders and working capital offset by contractual repayment on the RMB denominated loan. Page 9 of 20

10 1(c) Consolidated cash flow statement (3Q 2012 vs 3Q 2011) Operating activities 3Q Q 2011 S$ 000 S$ 000 Total return after taxation 15,201 10,548 Adjustments for: Finance income (237) (102) Finance costs 2,906 2,851 Depreciation and amortisation Taxation 11,000 5,205 Ineffective portion of changes in fair value of cash flow hedges - 1,423 Manager s management fees payable in units 1, Plant and equipment written off 8 7 Impairment losses/(write-back) on trade receivables, net 28 (33) Operating income before working capital changes 30,390 21,101 Changes in working capital: Trade and other receivables (8,953) 5,694 Trade and other payables 3,360 (4,765) Cash generated from operating activities 24,797 22,030 Income tax paid (4,025) (3,419) Net cash from operating activities 20,772 18,611 Investing activities Interest received Net cash outflow on acquisition of subsidiary companies - (2,828) Capital expenditure on investment properties (1,201) (984) Proceed from disposal of plant and equipment - 2 Purchase of plant and equipment (707) (385) Net cash used in investing activities (1,671) (4,093) Financing activities Distribution to Unitholders 1 (33,280) (26,822) Payment of equity issue expenses - (523) Proceeds from bank loans 35,000 26,500 Repayment of bank loans (1,000) (4,100) Interest paid (2,607) (2,076) Net cash used in financing activities (1,887) (7,021) Increase in cash and cash equivalents 17,214 7,497 Cash and cash equivalents at beginning of period 79,845 46,919 Effect on exchange rate changes on cash balances (1,991) (339) Cash and cash equivalents at end of period 95,068 54,077 Footnote: 1. Distribution for the period from 1 January 2012 to 30 June 2012 was paid in September Distribution for the period from 1 January 2011 to 29 June 2011 was paid in September Page 10 of 20

11 1(c) Consolidated cash flow statement (YTD 2012 vs YTD 2011) Operating activities YTD 2012 YTD S$ 000 S$ 000 Total return after taxation 74,030 76,587 Adjustments for: Finance income (398) (195) Finance costs 8,667 8,298 Depreciation and amortisation 1, Taxation 30,053 27,712 Manager s management fees payable in units 3,020 2,520 Plant and equipment written off 30 7 Ineffective portion of changes in fair value of cash flow hedges - 1,423 Change in fair value of investment properties (38,227) (56,588) Impairment losses/(write-back) on trade receivables, net 25 (55) Operating income before working capital changes 78,503 60,680 Changes in working capital: Trade and other receivables (17,022) (7,370) Trade and other payables 2,236 2,667 Cash generated from operating activities 63,717 55,977 Income tax paid (10,540) (10,024) Net cash from operating activities 53,177 45,953 Investing activities Interest received Net cash outflow on purchase of investment property (1,434) (1,718) Net cash outflow on acquisition of subsidiary companies - (72,389) Capital expenditure on investment properties (6,805) (1,312) Proceed from disposal of plant and equipment 23 2 Purchase of plant and equipment (2,372) (1,225) Net cash used in investing activities (10,190) (76,447) Financing activities Proceeds from issuance of new units - 70,000 Distribution to Unitholders 2 (63,726) (52,775) Payment of equity issue expenses - (1,989) Payment of financing expenses (332) (1,078) Proceeds from bank loans 115,000 62,400 Repayment of bank loans (67,802) (22,074) Settlement of derivative contracts 8,642 - Interest paid (7,816) (8,000) Net cash (used in)/from financing activities (16,034) 46,484 Increase in cash and cash equivalents 26,953 15,990 Cash and cash equivalents at beginning of period 70,115 39,936 Effect on exchange rate changes on cash balances (2,000) (1,849) Cash and cash equivalents at end of period 95,068 54,077 Page 11 of 20

12 Footnotes: 1 The s cash flow statement for YTD 2011 includes cash flows of CapitaMall Minzhongleyuan, which was acquired on 30 June Cumulative distribution for the period from 30 June 2011 to 31 December 2011 and 1 January 2012 to 30 June 2012 were paid in March 2012 and September 2012 respectively. Cumulative distribution for the period from 1 July 2010 to 31 December 2010 and 1 January 2011 to 29 June 2011 were paid in March 2011 and September 2011 respectively. 1(d)(i) Statement of changes in Unitholders funds (3Q 2012 vs 3Q 2011) Trust 3Q Q Q Q 2011 S$ 000 S$ 000 S$ 000 S$ 000 Unitholders funds as at beginning of period 950, , , ,816 Operations Change in Unitholders funds resulting from operations before distribution 14,894 10,790 (1,615) (15,293) Transfer to general reserve (917) (483) - - Net increase/(decrease) in net assets resulting from operations 13,977 10,307 (1,615) (15,293) Movements in hedging reserve Effective portion of changes in fair value of cash flow hedges 402 (77) 402 (77) Movement in foreign currency translation reserve Translation differences from financial statements of foreign operations (23,408) (1,915) - - Exchange differences on monetary items forming part of net investment in foreign operations (36,329) (5,294) - - Exchange differences on hedges of net investment in foreign operations 8,746 (6,846) - - Net (loss)/gain recognised directly in Unitholders funds (50,589) (14,132) 402 (77) Movement in general reserve Unitholders transactions Creation of units payable/paid to manager - Manager s management fees payable/paid 1, , Units issued in respect of acquisition fees for CapitaMall Minzhongleyuan - 1,141-1,141 Distribution to Unitholders 1 (33,280) (26,822) (33,280) (26,822) Net decrease in net assets resulting from Unitholders Transactions (32,273) (24,814) (32,273) (24,814) Unitholders funds at end of period 882, , , ,632 Footnote: 1. Distribution for the period from 1 January 2012 to 30 June 2012 was paid in September Distribution for the period from 1 January 2011 to 29 June 2011 was paid in September Page 12 of 20

13 1(d)(i) Statement of changes in Unitholders funds (YTD 2012 vs YTD 2011) Trust YTD 2012 YTD YTD 2012 YTD 2011 S$ 000 S$ 000 S$ 000 S$ 000 Unitholders funds as at beginning of period 913, , , ,140 Operations Change in Unitholders funds resulting from operations before distribution 73,166 76,431 7,634 (29,431) Transfer to general reserve (2,055) (1,447) - - Net increase/(decrease) in net assets resulting from operations 71,111 74,984 7,634 (29,431) Movements in hedging reserve Effective portion of changes in fair value of cash flow hedges 434 (2,940) 434 (2,940) Movement in foreign currency translation reserve Translation differences from financial statements of foreign operations (22,063) (19,396) - - Exchange differences on monetary items forming part of net investment in foreign operations (37,165) (31,367) - - Exchange differences on hedges of net investment in foreign operations 15,172 6, Net (loss)/gain recognised directly in Unitholders funds (43,622) (47,452) 434 (2,940) Movement in general reserve 2,055 1, Unitholders transactions New units issued 2-70,000-70,000 Creation of units payable/paid to manager - Manager s management fees payable/paid 3,020 2,520 3,020 2,520 - Units issued in respect of acquisition fees for CapitaMall Minzhongleyuan 3-1,141-1,141 Distribution to Unitholders 4 (63,726) (52,775) (63,726) (52,775) Equity issue expenses 5 - (4,023) - (4,023) Net (decrease)/ increase in net assets resulting from Unitholders transactions (60,706) 16,863 (60,706) 16,863 Unitholders funds at end of period 882, , , ,632 Footnotes: 1. The s results for YTD 2011 include consolidation of 100% interest in CapitaMall Minzhongleyuan, which was acquired on 30 June ,829,000 new units were issued via a private placement exercise which was completed on 30 June 2011 for the purpose of acquiring CapitaMall Minzhongleyuan, through the acquisition of the entire issued share capital of Somerset (Wuhan) Investments Pte Ltd and acquisition of the outstanding shareholder s loans in Somerset (Wuhan) Investments Pte Ltd ,377 new units were issued on 18 July 2011 as payment of acquisition fees for the acquisition of CapitaMall Minzhongleyuan. 4. Distribution to Unitholders for YTD 2012 includes the cumulative distribution for the period from 30 June 2011 to 31 December 2011 and 1 January 2012 to 30 June 2012 which were paid in March 2012 and September 2012 respectively. Distribution to Unitholders for YTD 2011 includes the cumulative distribution for the period from 1 July 2010 to 31 December 2010 and 1 January 2011 to 29 June 2011 which were paid in March 2011 and September 2011 respectively. 5. Includes underwriting fees and professional fees paid and payable in connection to the private placement exercise completed on 30 June 2011 for the acquisition of CapitaMall Minzhongleyuan. Page 13 of 20

14 1(d)(ii) Details of any change in the issued and issuable units (3Q 2012 vs 3Q 2011) Trust 3Q Q 2011 Units Units Balance as at beginning of period 690,457, ,498,650 New units issued: - As payment of manager s management fees 1 761, ,375 - As payment of acquisition fee of CapitaMall Minzhongleyuan - 922,377 Issued units as at end of period 691,219, ,093,402 New units to be issued: - As payment of manager s management fees 2 690, ,509 Total issued and issuable units as at end of period 691,909, ,829,911 Footnotes: 1. This was the performance component of the manager s management fees for 2Q 2012 and 2Q 2011 which were issued in September 2012 and September 2011 respectively. 2. This was the performance component of the manager s management fees for 3Q 2012 (which will be issued in 4Q 2012) and 3Q 2011 which was issued in November (d)(ii) Details of any change in the issued and issuable units (YTD 2012 vs YTD 2011) Trust YTD 2012 YTD 2011 Units Units Balance as at beginning of period 688,829, ,381,914 New units issued: - As payment of manager s management fees 1 2,389,204 1,960,111 - In connection with private placement exercise completed on 30 June ,829,000 - As payment of acquisition fee of CapitaMall Minzhongleyuan - 922,377 Issued units as at end of period 691,219, ,093,402 New units to be issued: - As payment of manager s management fees 2 690, ,509 Total issued and issuable units as at end of period 691,909, ,829,911 Footnotes: 1. This was the performance component of the manager s management fees for 4Q 2011, 1Q 2012 and 2Q 2012 which were issued in March 2012, June 2012 and September 2012 respectively. For YTD 2011, the performance component of the manager s management fee for 4Q 2010, 1Q 2011 and 2Q 2011 were issued in March 2011, June 2011 and September 2011 respectively. 2. This was the performance component of the manager s management fees for 3Q 2012 (which will be issued in 4Q 2012) and 3Q 2011 which was issued in November Whether the figures have been audited, or reviewed and in accordance with which standard (eg. the Singapore Standard on Auditing 910 (Engagement to Review Financial Statements), or an equivalent standard) The figures have not been audited nor reviewed by our auditors. 3 Where the figures have been audited or reviewed, the auditor s report (including any qualifications or emphasis of matter) Not applicable. Page 14 of 20

15 4 Whether the same accounting policies and methods of computation as in the issuer s most recent audited annual financial statements have been applied The has applied the same accounting policies and method of computation in the financial statements for the current financial period, which are consistent with those described in the audited financial statements for the year ended 31 December If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what had changed, as well as the reasons for, and the effect of, the change Nil 6 Earnings per unit ( EPU ) and distribution per unit ( DPU ) for the financial period In computing the EPU, the weighted average number of units as at the end of each period is used for the computation. The diluted EPU is the same as the basic EPU as there are no dilutive instruments in issue during the period. In computing the DPU, the number of units as at the end of each period is used. 3Q Q 2011 Weighted average number of units in issue 690,481, ,277,801 Earnings per unit ( EPU ) 1 Based on weighted average number of units in issue Based on fully diluted basis Number of units in issue at end of period 691,219, ,093,402 Distribution per unit ( DPU ) Based on the number of units in issue at end of period YTD 2012 YTD 2011 Weighted average number of units in issue 689,729, ,719,217 Earnings per unit ( EPU ) 1 Based on weighted average number of units in issue Based on fully diluted basis Number of units in issue at end of period 691,219, ,093,402 Distribution per unit ( DPU ) Based on the number of units in issue at end of period Footnote: 1. EPU is calculated based on total return after tax and non-controlling interest. Page 15 of 20

16 7 Net asset value ( NAV ) backing per unit based on issued units at the end of the period Trust 30 Sep Dec Sep Dec 2011 NAV per unit $1.28 $1.33 $0.66 $0.74 Adjusted NAV per unit (excluding distributable income) $1.25 $1.28 $0.64 $ Review of the performance 8(i) Statement of total return for the 3Q Q Q 2012 YTD 2012 YTD S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 Gross revenue 38,633 33,844 38, ,666 95,425 Property operating expenses (13,461) (12,163) (13,199) (39,160) (32,418) Net property income 25,172 21,681 24,924 75,506 63,007 Manager s management fees Base fee (971) (857) (983) (2,867) (2,414) Manager s management fees Performance fee (1,007) (867) (997) (3,020) (2,520) Trustee s fees (69) (64) (80) (215) (182) Valuation fees (79) (57) (69) (228) (218) Other trust operating (expenses)/income (248) 182 (352) (1,266) 69 Finance income Foreign exchange gain/(loss) - realised 6,068 (86) 93 6,164 (501) Finance costs (2,906) (2,851) (2,956) (8,667) (8,298) Total return before change in fair value of financial derivatives, investment properties and unrealised foreign exchange gain/(loss) 26,197 17,183 19,728 65,805 49,138 Ineffective portion of changes in fair value of cash flow hedges - (1,423) - - (1,423) Change in fair value of investment properties ,227 38,227 56,588 Foreign exchange gain/(loss) - unrealised 4 (7) 2 51 (4) Total return before taxation 26,201 15,753 57, , ,299 Taxation (11,000) (5,205) (13,869) (30,053) (27,712) Total return for the period after taxation 15,201 10,548 44,088 74,030 76,587 Attributable to : Unitholders 14,894 10,790 43,782 73,166 76,431 Non-controlling interest 307 (242) Total return for the period after taxation 15,201 10,548 44,088 74,030 76,587 Page 16 of 20

17 8 Review of the performance 8(i) Statement of total return for the 3Q Q Q 2012 YTD 2012 YTD S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 Distribution statement for the Total return for the period attributable to Unitholders before distribution 14,894 10,790 43,782 73,166 76,431 Net effect of distribution adjustments 1,839 3,792 (27,133) (23,147) (34,906) Income available for distribution to Unitholders 16,733 14,582 16,649 50,019 41,525 Distribution per unit (in cents) - For the period Annualised Footnote: 1. The YTD 2011 group results include contribution from CapitaMall Minzhongleyuan which was acquired on 30 June (ii) Breakdown of Gross Revenue Actual 3Q Q 2011 % 3Q Q 2011 % RMB 000 RMB 000 Change S$ 000 S$ 000 Change CapitaMall Xizhimen 56,265 49, ,196 9, CapitaMall Wangjing 42,176 39, ,391 7, CapitaMall Anzhen 20,051 19, ,989 3, CapitaMall Erqi 12,356 12, ,458 2, CapitaMall Shuangjing 10,600 10, ,109 1, CapitaMall Minzhongleyuan 12,433 13,584 (8.5) 2,474 2,597 (4.7) CapitaMall Qibao 21,171 17, ,213 3, CapitaMall Saihan 10,656 8, ,121 1, CapitaMall Wuhu 8,454 7, ,682 1, Gross revenue 194, , ,633 33, (iii) Breakdown of Net Property Income Actual 3Q Q 2011 % 3Q Q 2011 % RMB 000 RMB 000 Change S$ 000 S$ 000 Change CapitaMall Xizhimen 39,216 33, ,804 6, CapitaMall Wangjing 29,833 27, ,934 5, CapitaMall Anzhen 16,425 16, ,268 3, CapitaMall Erqi 9,747 9,833 (0.9) 1,940 1, CapitaMall Shuangjing 8,426 8, ,677 1, CapitaMall Minzhongleyuan 6,109 7,840 (22.1) 1,214 1,499 (19.0) CapitaMall Qibao 7,475 4, , CapitaMall Saihan 5,633 4, , CapitaMall Wuhu 3,657 2, Net property income 126, , ,172 21, Page 17 of 20

18 3Q 2012 vs 3Q 2011 In RMB terms, gross revenue increased by RMB15.2 million, or 8.5% over 3Q This was mainly due to higher rental growth in CapitaMall Saihan, CapitaMall Qibao and CapitaMall Xizhimen. Gross revenue in SGD terms for 3Q 2012 increased by $4.8 million, or 14.2% compared to 3Q 2011 mainly due to the stronger RMB against SGD in 3Q 2012 compared to 3Q Property expenses for 3Q 2012 increased by $1.3 million, or 10.7% over 3Q 2011 mainly due to higher business tax expense as a result of higher gross revenue. Management fees payable to the manager were $0.3 million higher than 3Q This was due to higher net property income and deposited properties. Finance income earned in 3Q 2012 was $0.1 million higher than 3Q 2011 mainly due to higher fixed deposit balances placed with financial institutions. Realised foreign exchange gain increased by $6.2 million over 3Q This was due to a one off recognition of the realised foreign exchange gain on the partial repayment of the shareholder s loan principal and shareholder s loan interest as a result of the redenomination of the shareholder s loans from RMB to USD in 3Q Finance costs in 3Q 2012 increased by 1.9% over 3Q This was mainly due to additional loans drawn at Trust level to finance distribution to Unitholders and working capital. Taxation in 3Q 2012 increased by $5.8 million over 3Q Additional taxation was provided as a result of the redenomination of shareholder s loan principal from RMB to USD in 3Q Q 2012 vs 2Q 2012 In RMB terms, gross revenue increased by RMB3.9 million, or 2.1% over 2Q This was mainly due to rental growth in CapitaMall Saihan and CapitaMall Xizhimen in 3Q Gross revenue in SGD terms for 3Q 2012 increased marginally by $0.5 million or 1.3% over 2Q 2012 as a result of weaker RMB against SGD in 3Q 2012 compared to 2Q Property expenses for 3Q 2012 increased marginally by $0.3 million, or 1.9% over 2Q 2012 mainly due to higher utilities and maintenance costs in 3Q Finance income earned in 3Q 2012 increased by $0.1 million over 2Q This was mainly due to higher fixed deposit balances placed with financial institutions. Finance costs in 3Q 2012 decreased by 1.7% over 2Q This was mainly due to repayment of higher interest rate loan during 2Q Taxation in 3Q 2012 decreased by $2.9 million over 2Q 2012 mainly due to deferred tax liabilities recognised in 2Q 2012 as a result of the increase in fair value of investment properties. YTD 2012 vs YTD 2011 In RMB terms, gross revenue for YTD 2012 increased by RMB73.6 million, or 14.8% over YTD This was mainly due to higher rental growth registered at the multi-tenanted malls and consolidation of three quarters result of CapitaMall Minzhongleyuan which was acquired on 30 June Gross revenue in SGD terms for YTD 2012 increased by $19.2 million, or 20.2% over YTD This was mainly due to the stronger RMB against SGD in YTD 2012 compared to YTD Property expenses for YTD 2012 increased by $6.7 million, or 20.8% over YTD 2011 mainly due to higher business tax as a result of higher gross revenue, consolidation of three quarters result of CapitaMall Minzhongleyuan which was acquired on 30 June Management fees payable to the manager were 19.3% higher than YTD 2011 mainly due to higher deposited properties and higher net property income achieved. Finance income earned in YTD 2012 increased by $0.2 million over YTD 2011 mainly due to higher fixed deposit balances placed with financial institutions. Finance cost in YTD 2012 increased by $0.4 million, or 4.4% over YTD This was mainly due to additional loans drawn at Trust level to finance distribution to Unitholders and for working capital. Page 18 of 20

19 9 Variance between the forecast or prospectus statement (if disclosed previously) and the actual results CRCT has not disclosed any forecast to the market. 10 Commentary on the competitive conditions of the industry in which the Trust and its investees operates and any known factors or events that may affect the Trust and its investees in the next reporting period and the next 12 months China recorded an economic growth rate of 7.4% in 3Q 2012 and 7.7% for the first three quarters of the year (Source: National Bureau of Statistics of China). At the Annual Meeting of the New Champions of the World Economic Forum held in Tianjin in September 2012, Premier Wen Jiabao affirmed that China was on track to meet its growth target of 7.5% in As part of China s fiscal stimulus package, the National Development and Reform Commission was reported to have approved infrastructure projects worth more than RMB1 trillion in September 2012 (Source: China Daily). Total retail sales growth of consumer goods improved to 14.2% year-on-year in September 2012, compared to 13.2% in August 2012 (Source: National Bureau of Statistics of China). The State Council, in its 12 th fiveyear plan for domestic trade development, projected China s retail sales growth of about 15% per annum, reaching RMB32 trillion in Beijing Retail Market Update The retail market in Beijing remained healthy in 2Q The stock of mid- to high-end shopping centres in Beijing increased by 2.01% quarter-on-quarter to about 4.78 million sqm, as a result of new completions of Seasons Place Phase II and Indigo. Despite the new supply, overall vacancy rate of Beijing mid- to high-end shopping malls decreased to 8.8%, the lowest vacancy rate for Beijing since Retailers in the fashion, F&B and watches and jewellery sectors were active in the leasing market. The investment market remained calm in 2Q 2012, with overpriced capital values and limited room for negotiation continuing to be transaction hurdles. Consumer confidence is expected to remain positive. (Source: Colliers) Shanghai Retail Market Update The opening of new malls, One Prime and Agile International Plaza, in 3Q 2012 added 49,997 sqm of new supply to Shanghai s retail market. Vacancy rate remained at 10.2%, supported by robust demand. The traditional department store sector, with its limited retail format and outdated positioning, underperformed and is expected to face continued challenges in the future if they fail to adapt and upgrade. The total stock in Shanghai s retail market will increase in the fourth quarter but both rental and vacancy rate is expected to remain stable. (Source: Colliers) 11 Distribution 11(a) Current Financial Period Any distribution declared for the current financial period? No. 11(b) Corresponding period of the preceding financial period Any distributions declared for the corresponding period of the immediate preceding financial period? No. 11(c) Date payable : Not applicable 11(d) Book closure date : Not applicable 12 If no distribution has been declared/recommended, a statement to that effect Not applicable. Page 19 of 20

20 13 If the has obtained a general mandate from Unitholders for IPT, the aggregate value of such transactions as required under Rule 920 (1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect The has not obtained a general mandate from Unitholders for Interested Person Transactions ( IPT ). 14 Confirmation Pursuant to Rule 705(5) of the Listing Manual To the best of our knowledge, nothing has come to the attention of the Board of Directors of the manager of CapitaRetail China Trust (the Manager ) which may render the unaudited interim financial results of the and Trust (comprising the balance sheets, statement of total return, distribution statement, statement of changes in Unitholders funds and cash flows statement, together with their accompanying notes) as at 30 September 2012, to be false or misleading in any material respect. On behalf of the Board of the Manager Mr Lim Beng Chee Director Mr Tan Tee Hieong Chief Executive Officer / Director This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events. BY ORDER OF THE BOARD CAPITARETAIL CHINA TRUST MANAGEMENT LIMITED (Company registration no D) (as Manager of CapitaRetail China Trust) Goh Mei Lan Company Secretary 23 October 2012 Page 20 of 20